The board of Russia’s second-largest bank state controlled VTB recommended paying out RUB275.8bn ($2.97bn) in total dividends for 2024, according to Interfax corporate disclosure portal.
As followed by bne IntelliNews, due to persistent capital pressures, VTB was not expected to pay dividends for 2024 IFRS profit of RUB551bn.
The surprise dividend announcement makes 50% of IFRS profit for 2024, implying RUB25.58 ($0.28) payout per ordinary share, equivalent to 26% of the current share price, Renaissance Capital analysts commented.
The decision contradicts prior consensus expectations that VTB would retain a larger share of earnings to support capital buffers. As of end-1Q25, VTB’s capital adequacy ratios stood at only 6.40% (N20.1) and 9.90% (N20.0), with a minor increase in regulatory minimums scheduled for July.
The dividend payout is expected to reduce capital adequacy by 1.1pp, but the bank plans to replenish buffers through retained earnings, moderate loan growth, asset sales, and possibly a new share issue, RenCap analysts commented.
As a reminder, in 2025 the bank’s management pledged to get rid of non-core assets. VTB has for years been called upon for bailing out troubled industrial majors, such as the United Shipbuilding Corporation (USC or OSK). However, in the first signs of a possible shift of policy, this year the bank called off a deal to acquire major shipyard Zvezda.
Most recently the bank contined to post strong profitability in 1Q25, but it was underpinned by one-off factors such as gains on financial instruments.
Related Articles
Drones strike Russia’s largest oil port of Primorsk
More than 30 Ukrainian drones targeted Russia’s biggest oil terminal of Primorsk overnight on September 11–12, The Moscow Times reported on September 12. A pumping station caught fire as a ... more
Russian drones targeted Rzeszów airport hub, media claim
Russian drones, which breached Polish airspace in the early hours of September 10, might have been targeting the airport in Rzeszów, which is vital for the West’s military supplies to Ukraine, ... more
Second Russian LNG tanker arrives in Chinese port defying sanctions
A second vessel transporting LNG from Russia’s sanctioned Arctic LNG 2 terminal has docked at a Chinese port, Reuters reported on September 6 citing ship tracking data from the London Stock ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
21 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago